There were many stocks which fell sharply on Tuesday and one of those was that of Universal Power Industry Corporation (OTCMKTS:UPIN). The company saw its stock tank by as much as 58% amidst a strong selloff after reports emerged that its subsidiary company Play Market had been successful in completing the acquisition of the denim making factory Guangzhou Fang Ya Denim Co.
The news did not quite excite investors and the stock suffered from a selloff. In this situation, it might be a good idea for investors to take a closer look at the transaction and then make up their minds about the Universal Power Industry Corporation stock.
The factory that has been acquired by Play Market is situated in the coastal province in South China named the Guangdong Province. More importantly, it is also necessary for investors to keep in mind that Guangdong is one of the designated Special Economic Zones in China and is meant for welcoming investments from overseas in companies through tax investments. It is generally meant for companies which are involved in exporting products. Despite the losses recorded by the Universal Power Industry Corporation stock yesterday, investors could consider keeping an eye on it this week.
Market Reaction:
On Tuesday, UPIN stock slumped 58% at $0.0800 with more than 5.26 million shares, compared to its average volume of 952k shares. The stock had moved within a range of $0.0662 – 0.1938 after opening the trade at $0.1938. Over the past 52-week, the stock has been trading within a range of $0.0170 – 0.2790.
 Stock Slumps 58%: Here is Why){kind=link}